EU budget delinquents have the upper hand 26 Apr 2016 The European Commission is considering penalising Spain and Portugal for flouting budget rules designed to underpin the euro. Doing so would risk a political backlash. Letting them off sends a signal EU budget rules are toothless. It hardly helps that the rulebook is so complex.
Darty’s spiraling price tag can still go higher 21 Apr 2016 Fnac has upped its offer for the electrical goods retailer to 779 mln pounds, and added cash. Its bid is now higher than rival Conforama’s latest one, although the South Africans can probably offer more. But, after finding additional synergies, so now can Fnac.
L’Oreal valuation applies too much gloss 19 Apr 2016 The French cosmetics group reported a 4.2 percent rise in like-for-like sales in the first quarter, in a tough environment for consumer goods. But thin coverage in emerging markets relative to peers, and less exciting growth, suggests the overall picture is less pretty.
Hollande is just a scapegoat for French stasis 15 Apr 2016 The Gallic president’s labour reform efforts are earning him ultra-low poll ratings and spurring street protests. The IMF reckons such changes are best rolled out during economic upswings. But recent history shows there’s rarely a good time to overhaul French job rules.
Hail equity investors’ rediscovery of risk 14 Apr 2016 The effect of easy money on stocks is ebbing. True, equity prices have rebounded despite economic uncertainty. But money managers are starting to want higher rewards for holding shares versus benchmark bonds, and are betting stock volatility will rise. It’s a welcome shift.
Bollore stake boosts Fnac’s Darty bid in two ways 12 Apr 2016 The Vivendi chief is buying a 15 pct stake in struggling French CD and book seller Fnac. That gives the retailer more cash to up its 660 mln pound bid for Darty. Speculation about what the billionaire has in mind should boost the value of the shares Fnac is offering Darty too.
Euro zone bond bonanza: waste not, want not 12 Apr 2016 The average yield on German debt has hit zero and France is locking in low borrowing costs for decades. How governments use such cheap funding matters. Berlin’s migrant spending may reap more benefits than French handouts to students. Public investment would be even better.
Berlusconi, Bollore, Murdoch lock horns: who wins? 8 Apr 2016 Vivendi, controlled by Vincent Bollore, has bought out Silvio Berlusconi’s Mediaset Italian pay-TV business for 720 mln euros. That creates tougher competition for Rupert Murdoch’s Sky. Of the three tycoons, former Italian PM Berlusconi comes out best.
Wanted: candidates for Europe’s worst CEO job 6 Apr 2016 Air France-KLM’s boss Alexandre de Juniac has vacated an unenviable managerial position. Europe’s weakest legacy carrier is hobbled by high costs, mighty unions and a wayward state shareholder. His successor will need fluent French, modest pay expectations, and little ambition.
Peugeot’s Tavares might be the anti-Marchionne 5 Apr 2016 The French carmaker’s conservative short-term targets have disappointed. Yet CEO Carlos Tavares is probably just being realistic. It’s a sharp contrast with the bullish goals of Fiat boss Sergio Marchionne. Despite the differences, both are heading towards the same place.
Lessons from France’s telco merger fumble 4 Apr 2016 Shares in French telecom operators dropped sharply after Orange and Bouygues called off a 10 bln euro deal. The end of a price war would have benefitted the sector. But the scale of the disappointment raises questions about whether consumers would have been much better off.
Hollande is in worse position than French economy 4 Apr 2016 Unemployment keeps hitting new highs but at least consumption and growth are holding up pretty well. President Francois Hollande’s plight is far more parlous. High-profile missteps are taking a toll on both his own political prospects and those of his ruling Socialists.
YSL adds to unhappy trend of big designer exits 1 Apr 2016 Hedi Slimane is leaving the luxury house after four years. It’s a setback for one of French group Kering’s fastest-growing labels. Losing the odd creative is no crisis, but with recent exits at Dior, Gucci and Lanvin, retaining talent could drag on profitability.
Bickering ad men promote more women than tech does 31 Mar 2016 A discrimination lawsuit at a WPP unit has led boss Martin Sorrell to trade barbs with Publicis CEO Maurice Levy over women’s advancement. Both firms, though, do better on gender equality at senior levels than Facebook or Google. That’s a rare edge over their new rivals.
French telco unwind would be missed opportunity 31 Mar 2016 Orange and Bouygues are in make-or-break talks to seal a deal. Their terse statements after months of discussions have spooked the market, with shares in all four French operators tumbling, because a tie-up might benefit all. But obstacles like governance and valuation remain.
AXA stalwart would be partial fix for HSBC 21 Mar 2016 The UK bank already said it will choose an outsider as its next chair. Board member Henri de Castries, stepping down at French insurer AXA, fits the bill. Ideally though, HSBC would pick someone who hadn’t committed the governance no-no of simultaneously being chairman and CEO.
Credit Agricole glosses over the point of fintech 9 Mar 2016 The French lender will invest 4.9 bln euros into digital banking. Yet cost savings won’t bring job cuts. That contradiction works given CredAg’s quirky rural model. But it neglects an inconvenient truth: for investors, fintech’s appeal is to help make staff and branches obsolete.
France will labour to copy Finns’ reform progress 7 Mar 2016 The Nordic country is a step closer to shifting away from centralised wage bargaining. French efforts to do the same are running into problems. True, the Gallic economy hasn’t suffered as much as the Finnish one. But low union membership may be more to blame.
Going nuclear still best option for EDF in UK 7 Mar 2016 The French power group lost its CFO over a plan to build nuclear reactors in Britain. The Hinkley Point project is risky and expensive, but the UK has few options if it is to meet energy demand and emissions targets. The generous terms reflect that; EDF ought to push ahead.
France tries potent anti-Brexit ploy: threats 3 Mar 2016 Gallic warnings that migrants will be waved through to Britain if the country leaves the EU could be scare tactics. But Economy Minister Emmanuel Macron’s words may do more to sway UK voters who fear immigration than economic arguments about the benefits of staying in the club.